The AUD to FJD exchange rate is currently range-bound, with a slight upward bias.
Key drivers include a potential rise in interest rates by the Reserve Bank of Australia, expected to strengthen the AUD. This is contrasted by the ongoing economic pressures in Fiji, primarily from reduced export revenues due to US tariffs and modest growth projections. While inflation remains stable in Fiji, its economic outlook is dampened by global uncertainties.
The near-term trading range for the AUD to FJD is expected to remain within its recent stable range. The current exchange rate is about 1.6% above its three-month average.
An upside risk for the AUD could come from stronger than anticipated economic data in Australia, particularly around commodity exports. Conversely, a downside risk may arise if the Fijian economy stabilizes unexpectedly or if geopolitical tensions escalate, impacting overall risk sentiment and the demand for the AUD.